Yahoo Finance

If you want to know who really controls Concert Pharmaceuticals, Inc. (NASDAQ:CNCE), then you'll have to look at the makeup of its share registry. And the group that holds the biggest piece of the pie are institutions with 66% ownership. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

Last week’s 11% gain means that institutional investors were on the positive end of the spectrum even as the company has shown strong longer-term trends. The one-year return on investment is currently 46% and last week's gain would have been more than welcomed.

Let's delve deeper into each type of owner of Concert Pharmaceuticals, beginning with the chart below.

See our latest analysis for Concert Pharmaceuticals

What Does The Institutional Ownership Tell Us About Concert Pharmaceuticals?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Concert Pharmaceuticals already has institutions on the share registry. Indeed, they own a respectable stake in the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Concert Pharmaceuticals, (below). Of course, keep in mind that there are other factors to consider, too.

Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. It looks like hedge funds own 7.6% of Concert Pharmaceuticals shares. That's interesting, because hedge funds can be quite active and activist. Many look for medium term catalysts that will drive the share price higher. Our data shows that BVF Partners L.P. is the largest shareholder with 7.6% of shares outstanding. With 4.5% and 3.8% of the shares outstanding respectively, Perceptive Advisors LLC and The Vanguard Group, Inc. are the second and third largest shareholders. Furthermore, CEO Roger Tung is the owner of 1.8% of the company's shares.

After doing some more digging, we found that the top 17 have the combined ownership of 50% in the company, suggesting that no single shareholder has significant control over the company.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.